On March 6, 2015, the Federal Energy Regulatory Commission (FERC) issued an Order to Show Cause and Notice of Proposed Penalty (Order) to City Power Marketing, LLC and K. Stephen Tsingas (jointly, Respondents). The Order requires the Respondents to show cause why they should not be found to have violated the Federal Power Act and the Commission’s regulations prohibiting market manipulation by engaging in fraudulent Up To Congestion (UTC) transactions in PJM Interconnection L.L.C.’s (PJM) energy markets. The Order also requires City Power to show cause why it should not be found to have violated the Commission’s rules by making false statements and material omissions related to the existence of instant messages between partners in City Power discussing the alleged fraudulent conduct.
The Order directs the Respondent show cause why they should not be required to disgorge profits and be assessed civil penalties in the following amounts:
- City Power and Mr. Tsingas: Jointly and severally disgorge unjust profits of $1,278,358
- City Power: $14,000,000 civil penalty
- Tsingas: $1,000,000 civil penalty